II-VI Is A Powerful Choice In Multiple Secular Growth Trends

Jun. 05, 2022 3:36 AM ETCoherent Corp. (COHR)AAPL, AMSSY, AUKUF, AVGO, AVGOP, FTXL, IIVI, IPGP, LITE23 Comments
Mirco Lysek profile picture
Mirco Lysek


  • II-VI has built a remarkably robust moat and is massively investing in strong secular growth trends.
  • The street consensus anticipates 16.11% FCF and 13.34% EBIT CAGR over the next 5 years.
  • The acquisition of Coherent is fully funded and the company has a sustainable and realistic deleveraging plan.
  • An advantageous risk-reward profile is limiting the downside while my valuation model prices the stock at $89.73 with 44% upside potential.
  • The company was awarded twice from Apple’s Advanced Manufacturing Fund totaling $800M and underscoring the relevance of its products and technologies.
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Investment thesis

II-VI Incorporated (IIVI) has aggressively expanded its leadership position in its most relevant markets, while maintaining a relatively healthy balance sheet and securing its market share in secular growth trends. The company is anticipated to close the acquisition of

This article was written by

Mirco Lysek profile picture
Independent trader with 18+ years of experience in the equity market. Master's Degree in Management specialized in Finance and Strategy. It’s all about managing the risk: Being wrong is unavoidable, staying wrong is a choice. While I enjoy giving my opinion on long-term investment opportunities, my focus is oriented toward momentum and mid-term position trading, as I leverage my proficiency in fundamental analysis and combine selected quantitative metrics and theories in technical analysis.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: All of my articles are a matter of opinion and must be treated as such. All opinions and estimates reflect my best judgment on selected aspects of a potential investment in securities of the mentioned companies, as of the date of publication. Any opinions or estimates are subject to change without notice. I am not acting in an investment adviser capacity, and this article is not financial advice. I invite every investor to do their research and due diligence before making any investment decisions. I take no responsibility for your investment decisions but wish you great success.

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